Federal employee 20% pay cut?

[James48843]

That is one possible scenario.

Great article -opinion piece by Mike Causey over on Federal News radio today:

20 percent pay cut in the cards? - FederalNewsRadio.com

 

[wavecoder]

20% pay cut to feds? maybe if romney/ryan got elected

 

[k0nkuzh0n]

We've been informed that the current plan is for everyone to take a day a week without pay for 22 weeks. We have also halted all non critical overtime/comp time and travel

 

[Warrenlm]

In addition to "furloughs for feds"......Heard in the last few days of some layoffs coming to the worker bees of various beltway bandit and other government support corporations. Not the VPs of course. Talk about them continues to be focused on bonus size and date of payout. Seems it's like the herds crossing the rivers in Africa. Some must be lost for the greater good. We wanted fair, not growth, right? This must be George's fault.

 

[Kaufmanrider]

We've been informed that the current plan is for everyone to take a day a week without pay for 22 weeks. We have also halted all non critical overtime/comp time and travel

Will we see a rush of retirements? Less work days, and less workers, more work for us overpaid Fed's left behind.

We'll have the budget balanced in no time. Thin the herd as Warrenlm stated.

 

[Sensei]

There was an article in the Stars & Stripes stating that 800,000 Dept. of Defense employees will face a weekly furlough beginning in April if Congress fails to resolve the debt ceiling issue by the end of February. Have no fear. Congress will save us.

 

[Sensei]

There was an article in the Stars & Stripes stating that 800,000 Dept. of Defense employees will face a weekly furlough beginning in April if Congress fails to resolve the debt ceiling issue by the end of February. Have no fear. Congress will save us.

Link to article I was referring to:
DOD

 

[Warrenlm]

Some people are on the front line of the effort to make people understand that the obstructionists in Congress are the big problem. Being used in the 2014 campaign is still being used. I had a highly compensated GC, a believer, tell me that Obama was trying to fix the budget by taxing high income (he is one). I couldn't bring myself to tell him the tax increase was spent in one pork bill about disaster relief. Reeducation is almost complete.

 

[Frixxxx]

Will we see a rush of retirements? Less work days, and less workers, more work for us overpaid Fed's left behind.

We'll have the budget balanced in no time. Thin the herd as Warrenlm stated.

Does being furloughed also get calculated in high 3 retirement computations? Is it earned salary or expected salary? I'd like to hear that one explained.

 

[RealMoneyIssues]

Does being furloughed also get calculated in high 3 retirement computations? Is it earned salary or expected salary? I'd like to hear that one explained.

Isn't high 3 based on your salary? Your salary isn't changing, just your take home?

 

[Frixxxx]

The way I read opm.gov, It's earned salary. So it could affect a TON of retirees.

Computation

 

[WorkFE]

Yes but those closing in on retirement can resort back to higher years of earning, not neccessarily the immediate previous 3 years. It will still have some affect but not dramatically lower. IMHO.

 

[Cactus]

Isn't high 3 based on your salary? Your salary isn't changing, just your take home?

For FERS your high 3 is based on what you pay for. The simplest way to figure that out is to take your FERS deduction YTD on your last pay stub of the year and divide by .8% (0.008). It should be close to your salary but not exact as they don't take out for bonuses overtime and the like.

 

[RealMoneyIssues]

For FERS your high 3 is based on what you pay for. The simplest way to figure that out is to take your FERS deduction YTD on your last pay stub of the year and divide by .8% (0.008). It should be close to your salary but not exact as they don't take out for bonuses overtime and the like.

Sorry, not used to seeing "bonuses" and "overtime" in a salary environment. I am now properly schooled.

 

[Frixxxx]

Sorry, not used to seeing "bonuses" and "overtime" in a salary environment. I am now properly schooled.

I worked on a project for the last four years and instead of hiring people, they resorted in to authorizing me and two others "liberal overtime". Although great for my pocket book, bad for life....My wife was happy that the move has given me more time at home...Although I think she secretly misses the extra buck ppd.

Also, FEWarren, (I meant WorkFE, too many years in the Air Force) the affects however small still affect people thinking about retirement. Also, I have started hearing a few position will be downgraded and that inroduces a whole save-pay discussion.

I'm loving this, nothing to do but become smarter on retirement issues 12 years before I can actually do it. Leave it to the government to complicate another process to the point of insanity.

 

[Cactus]

It does pay to know what OPM is basing your retirement on. You don't want to be surprised after you've already left. I once read on some fed forum site about a poor retiree in San Francisco who was getting FERS based on a salary over 30K less then he actually used to make. That salary was still in the 120K range so I didn't feel too sorry for him. Still, you want to know. I don't know what they weren't including in in his case. Locality pay is included and is pretty high for San Francisco.